Does your house still “fit”? (Jack Strama)July 16, 2010
In purchasing your present home – you took inventory of your needs, wants and capabilities and matched them as best you could against what the housing market had to offer. The process may have taken a few weeks, a few months or extended over a longer period. You did your homework and made a good choice.
Would you make the same choice today? Perhaps not!
Since your last purchase, it’s likely your individual and family needs, wants and capabilities have changed. Let’s examine some of the possibilities:
Your family may have gotten larger, smaller or most certainly a bit older. Everyone’s has! Your employment or your spouse’s career may have taken a new direction. With changes in traffic patterns around the Metro area, commute time may have become a bigger consideration. Schools for young family members may now be more or less important. After considering these and other scenarios, you may already be asking yourself, “Why am I living here?”
So here’s the good news! Today’s choices are greater than ever and finding a home to match your capability is easier than it’s been in years.
When it comes to housing alternatives, Atlanta has many. It’s almost overwhelming how many different sizes, types and locations are available. And, with today’s home prices and interest rates, these choices are extremely attractive. Depending on location, prices have fallen 15-25% below previous levels and interest rates are at record lows, down 20-25% as well. Purchasing a home that was $500,000 before and is now available for $425,000 (using an 80%, 30 year, fixed rate loan at 4.5% rather 5.5% in effect earlier this year) will cost about $550 less per month. That’s $15,000 less in down payment and almost $6,600 a year in monthly savings!
Move-up buyers can capture today’s lower prices and interest rates and easily absorb the “hit” they take on the sale of their present home. Those choosing to down-size can reap the benefits of lower interest cost financing, lower taxes, utility and maintenance expenses and “right-size” their homes for easier living. The equity freed up, even though less than hoped for, will go a long way toward funding investment capital or retirement reserves.
Now may be the perfect time to give some thought to whether you want to take advantage of the current situation and reposition your housing choice for the future. Home prices will rebound and interest rates will rise again. The time to move is now!
If you would like a copy of our “Inventory of Changing Needs and Wants,” please email me at StramaTeam@AtlantaFineHomes.com and I will be glad to send it.